Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required. A natural person can be both a director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.
Unique features of a private limited company like limited liability protection to shareholders, ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for millions of small and medium sized businesses that are family owned or professionally managed.
IndiaFilings is the market leader in services relating to company registration in India. IndiaFilings can help you register a private limited company, one person company, nidhi company, section 8 company, producer company or Indian subsidiary. The average time taken to complete company formation is about 10 – 15 working days, subject to government processing time and client document submission. Get a free consultation for private limited company registration and business startup by scheduling an appointment with an IndiaFilings Advisor.
Features of Private Limited Company:-
- Require 2 Person as Entrepreneur i.e Directors.
- Easily Setup and recommend to Growing Startups.
- Limited Liability for Members.
- More Credibility as Compare to others.
- Easily raise funds from Investors.
- ESOP Option is available to motivated Employees.
Disadvantages of Private Limited Company:-
- Statutory Compliance is High.
- High Setup Cost as Compare to Others.
- Involvement of other Directors in Decision Makings.
- Restricted to transfer of the shares to others without agreements.
- Not allow invite to the public for deposits.
Procedure and Steps Taken to Register a Private Limited Company:-
Step 1. Application for Director Identification Number (DIN) in form DIR-3 & DSC (Digital Signature Certificate).
Step 2. Search for the Company Name availability.
Step 3. Application for the Name availability.
Step 4. Drafting of Memorandum of Association (MOA) & Articles of Association (AOA).
Step 5. Filing of e-forms with RoC (Registrar of Companies).
Step 6. Payment of RoC Fees & Stamp Duty.
Step 7. Verification of documents/forms by RoC
Step 8. The issue of Certificate of Incorporation by RoC
Documents Requirements for Private Limited Company Registration –
- ID Proof and Address Proof for all Directors.
1. ID Proof PAN Card is Mandatory for all Directors.
2. Aadhar Card | Voter Id | Passport | Driving License anyone of all Directors.
- Registered office address proof (Only for Communication Purpose)
Latest utility bill (Electric bill/Telephone bill/Gas Bill) or latest tax receipt/ownership deep of the property to be used for a registered office.
FAQ Series on Private Limited Company Registration
Yes, you can register your company at your residential address. there is no issue, you need only the utility bill copy of the same.b) Can I Register my family members in the company, if have no partner?
Yeah, it’s a good idea to register with your family member on the Paper. even on later stage you can change this or transfer the shares of the directors.c) How many days takes to register a private limited company?
Its take minimum 10 to 15 days avg. to register a private limited company in India.d) How much cost for the private limited company?
It’s cost nearby 14999/- INR except in some state like Punjab, Kerala and MP State due to Stamp Duty.e) What is meant by the authorized capital in case of private limited company i.e is 1 lakh rupees?
It’s a just a maximum share value which you can issue in your company so it’s not mean that you have to invest the 1 lakh rupees. you can start your own private limited company with any amount of capital.f) GST Registration is required for the private limited company?
GST Registration is optional till the 20 lakh rupees turnover and for northeast state 10 lakh rupees turnover. it’s a completely separate registration apart from privately limited company registration.
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